3 x major Virgin annoucements today
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3 x major Virgin annoucements today
1 - SQ invests A$105 million to become a shareholder.
2 - Virgin acquires Skywest
3 - Virgin buys 60% of Tiger Australia
Big news day!
2 - Virgin acquires Skywest
3 - Virgin buys 60% of Tiger Australia
Big news day!
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Virgin buys stake in Tiger
Tiger announces Virgin partnership - ABC News (Australian Broadcasting Corporation)
Any truth to the rumour that a 'MOU' is being drafted as we speak regarding the use of Virgin crews transfering over to Tiger to help with the rapid expansion plans?
Tiger Airways says it is selling a 60 per cent stake in its Australian operations to Virgin Australia for $35 million.
Tiger Australia will also pay an undisclosed annual license fee to Tiger's Singapore-listed parent company for at least 20 years for use of the brand, with the fee based on a fixed percentage of gross revenue.
The Australian company will also pay its Singaporean parent $5 million if it achieves certain financial performance targets within five years.
Tiger and Virgin have agreed to invest up to a further $62.5 million between them to grow the low-cost Australian carrier, with plans to expand the fleet from 11 aircraft currently up to 35 by 2018.
Virgin Australia has been repositioning itself as a premium airline brand to compete in the business traveller market against Qantas, and its chief executive John Borghetti says this deal will keep a strong foothold in the budget travel market.
"This transaction enables Virgin Australia to access the budget market and enables Tiger Australia to expedite its growth, providing greater competition to this important market segment," he said in a statement.
The companies say Tiger Australia will be managed as a standalone business, with John Borghetti as its inaugural chairman under the new structure, and the position to be rotated every two years
Tiger Australia will also pay an undisclosed annual license fee to Tiger's Singapore-listed parent company for at least 20 years for use of the brand, with the fee based on a fixed percentage of gross revenue.
The Australian company will also pay its Singaporean parent $5 million if it achieves certain financial performance targets within five years.
Tiger and Virgin have agreed to invest up to a further $62.5 million between them to grow the low-cost Australian carrier, with plans to expand the fleet from 11 aircraft currently up to 35 by 2018.
Virgin Australia has been repositioning itself as a premium airline brand to compete in the business traveller market against Qantas, and its chief executive John Borghetti says this deal will keep a strong foothold in the budget travel market.
"This transaction enables Virgin Australia to access the budget market and enables Tiger Australia to expedite its growth, providing greater competition to this important market segment," he said in a statement.
The companies say Tiger Australia will be managed as a standalone business, with John Borghetti as its inaugural chairman under the new structure, and the position to be rotated every two years
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Simply put....NO.
Tiger has plenty of people lined up to cope with any expansion. Most of the Captains looking at going to Tiger would have more experience than the people in Virgin.
Tiger has plenty of people lined up to cope with any expansion. Most of the Captains looking at going to Tiger would have more experience than the people in Virgin.
So the domestic market will go back to 50/50 or so like the old TAA/ ANSETT days. In my opinion the only hope for Qantas would be for the board/Joyce to fold Jetstar back into Qantas with red tails and offer one common standard thru the airline for the customers. Do i think they will do it. No.
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ASX Release on SkyWest (http://www.asx.com.au/asxpdf/2012103...c9rtrt52qc.pdf)
Seems the Virgin Cadetship through SkyWest is even more guaranteed to land you a Virgin job now, haha
Seems the Virgin Cadetship through SkyWest is even more guaranteed to land you a Virgin job now, haha
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Hi Higs
Thats not what I have heard, apparently discussions have already taken place regarding the many very experienced airbus pilots within the Virgin ranks and Tiger are keen to tap into this pool to help with the expansion.
There have also been discussions with the cadet training providers at Virgin/Skywest for a massive increase in the number of cadets that will now also be used in Tiger on the A320
Thats not what I have heard, apparently discussions have already taken place regarding the many very experienced airbus pilots within the Virgin ranks and Tiger are keen to tap into this pool to help with the expansion.
There have also been discussions with the cadet training providers at Virgin/Skywest for a massive increase in the number of cadets that will now also be used in Tiger on the A320
Last edited by Thatschecked; 29th Oct 2012 at 23:20.
Very smart move
I reckon this is a very clever move by Virgin.
They can now compete with the " Rat " on every level.
The full service part will be quite popular with many and still leave plenty of the LCC part to Tiger which will satisfy many travellers as well.
This is all good for Virgin and the travelling Public.
I bet QF rue the day John Borghetti left them and joined Virgin.
It's good to see some proper competition on all levels.
They can now compete with the " Rat " on every level.
The full service part will be quite popular with many and still leave plenty of the LCC part to Tiger which will satisfy many travellers as well.
This is all good for Virgin and the travelling Public.
I bet QF rue the day John Borghetti left them and joined Virgin.
It's good to see some proper competition on all levels.
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Back to the Two Airline Policy. I'll bet AJ has turned purple with rage!
A lot of people will be jockying for position regarding who gets commands and where.
Interesting times ahead- I'm sure there are 1 or 2 other announcements in the pipeline as well.
A lot of people will be jockying for position regarding who gets commands and where.
Interesting times ahead- I'm sure there are 1 or 2 other announcements in the pipeline as well.
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These transactions are breathtaking in their simplicity and impact on the strength of DJ going forward. Singapore must be smiling at the idiots across the road who had the audacity to start a fight with no ammunition and who now learn that there is a very serious player in town behind their discarded Exec.
DJ now have a structure to target both mainline and crapstar at the same time, albeit with only limited metal at this stage. Can anyone else see more coming over the horizon???
As the plan was named Game On and congratulations to all involved in showing how to run a company in the aviation business.
DJ now have a structure to target both mainline and crapstar at the same time, albeit with only limited metal at this stage. Can anyone else see more coming over the horizon???
As the plan was named Game On and congratulations to all involved in showing how to run a company in the aviation business.
Originally Posted by chookcooker
Do these super experienced TT drivers understand what a LSALT is?
good move by by JB, not entirely original of course, I just hope both parties VA management and staff have watched and learned from the ongoing debacle on the other side of the fence
Nunc est bibendum
I hope VIPA and AFAP work quickly and well to sort out any seniority and integration issues. If you're junior in DJ then I'd be phoning today to get them onto it quick smart. Otherwise you may find all the expansion happening in another carrier who will recruit from outside leaving you at the bottom of the pile for a very, very long time.
Then you'll face the absurdity of a dude who has been with Tiger for five minutes getting his command in under a couple of years whilst you've been with DJ for five plus and will be waiting another five plus (or longer) for command.
Then you'll face the absurdity of a dude who has been with Tiger for five minutes getting his command in under a couple of years whilst you've been with DJ for five plus and will be waiting another five plus (or longer) for command.
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Keg
I don't understand your tone of an apparent sense of entitlement to jobs in another "list" just because your own employer has bought a stake in that company. I doubt many virgin pilots had been seriously considering a move to tiger before today.
All this assumes Virgin pilots will can go/will want to go and if so, on what terms.
I use the word apparent because that just how it seems. Whether you meant it that way, probably not?
Whatever the outcome, I hope it is negotiated to the satisfaction of all pilots in both groups, and doesn't leave future pilots of either party out in the cold.
insert smiley thumbs up here.
I don't understand your tone of an apparent sense of entitlement to jobs in another "list" just because your own employer has bought a stake in that company. I doubt many virgin pilots had been seriously considering a move to tiger before today.
All this assumes Virgin pilots will can go/will want to go and if so, on what terms.
I use the word apparent because that just how it seems. Whether you meant it that way, probably not?
Whatever the outcome, I hope it is negotiated to the satisfaction of all pilots in both groups, and doesn't leave future pilots of either party out in the cold.
insert smiley thumbs up here.